WildTangent: Gamers Prefer Games With Ads Over Paid Games

Research firm IHS Inc. and game network WildTangent released research today that indicates consumers are willing to put up with "value exchange-style advertising" in games. IHS describes "value exchange advertising" as a method used by advertisers to reward gamers for viewing ads with items such as in-game items or free game sessions.

According to IHS, research found that "after engaging with value exchange ads a greater number of gamers intended to spend more money, more often and engaged with games longer than before any exposure to value exchange ads, leading game developers to a higher potential for revenue." Brand marketers also saw a higher level of engagement than before when sponsoring value exchange ads, according to IHS.

IHS claims that 86 percent of gamers it polled preferred free games with ads over paid games without ads; 79 percent of gamers said that they like receiving free virtual goods from clicking on ads; and that it recorded a 220 percent increase in the number of times gamers visited the 'add cash' area of a developer's game after seeing value exchange ads. Around 89 percent of gamers recalled value exchange advertisements in game; and marketers see two times more post-ad actions driven by in-game ads than by live TV.

WildTangent commissioned the study because its offers "value exchange advertising" in its games using its "BrandBoost" technology.

"With value exchange advertising like our BrandBoost ad platform, gamers receive rewards and uninterrupted gameplay, brands connect with gaming audiences, and developers unlock additional revenue streams," said Jay Levinger, director of market research at WildTangent Media. "When value exchange ads are done right, everybody wins."

You can check out the full report here.

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  1. 0
    Neeneko says:

    The devil will be in the details.  What types of games? What community? What types of gamers? What demographics?

    I would not be surprised if this holds true for certain markets, but how widly applicable is this?  Are they only talking about web games? MMOs? multiplayer?

    I really should download the white paper, but not thrilled about putting in my info….

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